Finding Text
Federal Agency: U.S. Department of Health and Human Services; U.S. Department of the Treasury Federal Program Name: Low-Income Home Energy Assistance; Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 93.568, 21.027 Pass-through Agency: Pennsylvania Department of Community and Economic Development (Liheap/SLFRF); PA CDFI (SBG/SBGII) Pass-Through Number: Contract #C000073877 (Liheap); Contract #C000084605 (SLFRF); Contract #C000082280 (SBG); Contract #C000086369 (SBGII) Award Period: October 1, 2020 – September 30, 2025 (Liheap); December 12, 2022 - December 31, 2026 (SLFRF); June 27, 2022 - December 31, 2026 (SBG); February 5, 2024 - June 30, 2026 (SBG) Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria: The compliance requirement for performance reporting requires organizations to establish and maintain effective internal controls to ensure that reported performance information is accurate, complete, timely, and verifiable. This includes documented procedures, clearly defined roles and responsibilities, evidence of supervisory review and approval by authorized personnel, and retention of supporting documentation sufficient to substantiate reported performance results. Condition: During our testing of performance and special reporting, we noted that the Organization did not maintain documentation evidencing review or approval of submitted reports. The reports tested did not include evidence demonstrating that an authorized individual reviewed and approved the performance and special reports prior to submission. Questioned Costs: No questioned costs have been identified. Context: This condition was identified during testing of performance and special reporting for the federal program. For all items selected, documentation of review or approval was not available. Cause: The Organization has not implemented formalized procedures requiring documented review and approval of performance and special reports prior to submission. Additionally, roles and responsibilities related to report preparation, review, and approval have not been clearly defined or enforced. Effect: Without documented evidence of review and approval by an authorized individual, the Organization cannot demonstrate that performance and special reports were appropriately reviewed prior to submission. This increases the risk that reports may contain errors, omissions, or unsupported information and limits assurance that reported performance results are reliable and compliant with applicable reporting requirements Repeat Finding: N/A: Not a repeat finding Recommendation: The Organization should implement formal internal controls over performance and special reporting by establishing documented procedures that require review and approval of all reports prior to submission. Management should define clear roles and responsibilities for report preparation and independent review, ensure that reviews are performed by an authorized individual, and maintain documentation evidencing review and approval, such as signatures, dates, or electronic approvals, to support compliance with performance reporting requirements. View of Responsible Officials and Planned Corrective Action: Please refer to Community Action Committee of the Lehigh Valley, Inc. and Subsidiaries’ Corrective Action Plan.